Current HELOC Rates in Oregon Today
OREGON HELOC RATES TODAY
Current HELOC rates in
Oregon.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in Oregon.
Key Points
• Comparing home equity line of credit rates in Oregon is essential for finding suitable lenders and competitive rates.
• Factors such as home equity, credit score, and income stability play a pivotal role in determining the HELOC rate offered in Oregon.
• HELOCs offer lower interest rates because borrowers use their home as collateral.
• HELOC interest rates are tied to the prime rate and can be influenced by broad economic factors.
• Maintaining a credit score of 680 or higher will help in securing a HELOC in Oregon.
Introduction to HELOC Rates
If you’re thinking about how to get equity out of your home in Oregon, this comprehensive article will ensure you have a solid grounding in the best home equity line of credit interest rates in Oregon and how to obtain them. You’ll gain valuable insights into the various factors that influence rates, plus advice on how to apply for a HELOC as well as different types of home equity loans and other ways to borrow.
First it’s important to make sure we cover the basics, starting with what is a home equity line of credit.
What Is a HELOC?
A HELOC is a revolving line of credit similar to a credit card. The amount you can borrow is based on your home equity, which is the difference between your home’s current value and your home loan balance. You don’t have to borrow the entire amount of the credit line at one time; you can borrow as you need to, and you’ll only pay interest on the amount of the credit line that you actually use. Lenders may allow you to borrow up to 90% of your home’s value, minus your mortgage.
HELOC interest rates are often variable, and so the cost of a HELOC can go up or down each month based on the amount of the credit line that you are using and your variable rate. But initial rates on a HELOC are typically lower than rates for personal loans or credit cards because your home is serving as collateral.
HELOCs have two main phases: the draw period and the repayment period.
The Draw Period
During the HELOC’s draw period (usually 10 years), you can access funds up to your credit limit, make payments to pay down your balance, and borrow the money again. The borrower is usually required to make interest payments during the draw period, but payments toward the principal may be optional. Borrowers can use a HELOC monthly payment calculator to estimate payments.
The Repayment Period
During the repayment period (10 to 20 years), borrowing ends and the principal is paid back with interest. A HELOC repayment calculator can help borrowers plan their payments.
Where Do HELOC Interest Rates Come From?
HELOC interest rates are tied to the prime rate and can be influenced by broad economic factors. The prime rate is the benchmark interest rate that banks charge their most creditworthy customers. Federal Reserve policy decisions regarding interest rates can also influence lenders as they set their rates. The best Oregon HELOC rates can vary, so it’s important to compare offers from different lenders during the application process.
How Interest Rates Impact HELOC Affordability
The interest rate you obtain for your HELOC can make a big difference in the affordability of a loan over the course of a 10-year draw and a 20-year repayment term. Even a 1% difference in interest rate can result in thousands — or even tens of thousands — of additional interest over the life of the loan. Here’s an example of a $50,000 HELOC repaid over 20 years at three different interest rates:
• At 6.00%: monthly payment $358, total interest paid $35,972
• At 7.00%: monthly payment $388, total interest paid $43,036
• At 8.00%: monthly payment $418, total interest paid $50,373
HELOC Interest Rate Trends
As you begin the process of searching for the best HELOC rates in Oregon, it’s helpful to understand how the average prime rate has fluctuated in recent years, as well as over the decades. It will help keep your rate expectations realistic.
Since 2018, the prime rate has undergone noteworthy fluctuations, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023, as you can see from the chart below. The graphic below shows a longer time period. As you can see, rates that are below 4.00% or above 10.00% are somewhat uncommon.
Historical Prime Interest Rate
| Date | U.S. Rate |
|---|---|
| 9/19/2024 | 8.00% |
| 7/27/2023 | 8.50% |
| 5/4/2023 | 8.25% |
| 3/23/2023 | 8.00% |
| 2/2/2023 | 7.75% |
| 12/15/2022 | 7.50% |
| 11/3/2022 | 7.00% |
| 9/22/2022 | 6.25% |
| 7/28/2022 | 5.50% |
| 6/16/2022 | 4.75% |
| 5/5/2022 | 4.00% |
| 3/17/2022 | 3.50% |
| 3/16/2020 | 3.25% |
| 3/4/2020 | 4.25% |
| 10/31/2019 | 4.75% |
| 9/19/2019 | 5.00% |
| 8/1/2019 | 5.25% |
| 12/20/2018 | 5.5% |
| 9/27/2018 | 5.25% |
Source: U.S. Federal Reserve
Historical U.S. Prime Rates
Factors Influencing HELOC Rates
The prime rate isn’t the only factor influencing the HELOC rate you’ll be offered. Your level of home equity, your credit score, and other information specific to you will guide the lender’s decision, and different lenders weigh factors differently — that’s why it’s important to do your homework when searching for the best HELOC rates in Oregon. Let’s look at these data points:
Home Equity
Having a significant amount of equity in your home makes you appear less risky to lenders, which can often lead to more favorable interest rates. Typically, homeowners need at least 15% to 20% equity in their property to qualify, and the more equity the better.
Credit Score
Maintaining a credit score of 680 or higher is crucial, and some lenders prefer a credit score of 700+. A higher credit score indicates lower risk, potentially leading to more favorable HELOC terms.
Stable Income
Lenders assess your overall income to determine your ability to repay the HELOC. But they are also looking at how consistent your income stream has been. If your income is erratic, a lender may ask you to provide extra documentation, such as additional tax returns, during your application process.
Loan-to-Value Ratio
Most lenders require your combined loan-to-value ratio (combined mortgage and credit line balance / appraised home value) to be 90% or less for a HELOC. The ratio is a key metric in determining your credit limit. If your mortgage balance is $300,000 and your desired HELOC is $100,000, and your home value is $500,000, then your LTV ratio is 80%.
Variable vs Fixed Interest Rates
HELOCs’ variable interest rates are subject to change during the life of the loan. Initially, variable interest rates are lower than typical fixed rates, but after a predetermined introductory period, which will be defined in the HELOC agreement, they fluctuate in accordance with market conditions. Home equity loans are another way to borrow money against your home equity. These loans are usually fixed rate.
Tools & Calculators
As you’re thinking about the costs of a HELOC, it’s helpful to use online calculators to assess how much you might be able to borrow and what monthly payments and total interest paid look like with different HELOC interest rates. Here are three useful tools:
Run the numbers on your HELOC.
-
Home Equity Loan Calculator
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Qualify for a Competitive HELOC Rate
Since lenders factor in your personal financial metrics when they decide what interest rate to offer you, it’s helpful to take a few steps before applying for a HELOC to ensure you present the best possible picture. Here’s a to-do list:
Take Care of Your Credit Score
As noted above, you’ll want to have a score of at least 680. Check your credit score and examine your credit report for any inaccuracies. Mistakes do happen, and fixing errors can help your score. You’ll also want to avoid using the full credit line available to you on any credit cards you have. And of course pay your bills on time.
Assess Your Home Equity
Regular mortgage payments have helped you build home equity over time. But how much equity? Look up your home on a real estate web site to find a rough estimate of its value. Subtract what you owe on your mortgage from your home’s estimated value, then divide the answer by your home’s estimated value to arrive at a percentage of equity. Ideally, it’s greater than 15% or, even better, 20%.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is how much you owe in monthly debt payments divided by your gross monthly income. Home equity lenders generally look for a DTI that’s below 36%, though some prefer an even lower number. But the lower your DTI, the better.
Application Process for a HELOC in Oregon
Applying for a HELOC in Oregon will involve sharing lots of financial details, so you’ll want to have your documents in order before approaching the application process. Follow this guide.
Step 1. Run the Numbers
Before applying for a HELOC, make sure your financial factors will work in your favor. Is your credit score at 680 or above? Are your monthly debts no more than a third of your gross monthly income? Finally, estimate your home equity to see that it’s at least 15%. Some lenders allow you to prequalify online.
Step 2. Compare Lenders
When searching for the best HELOC rates in Oregon, compare offers from multiple lenders. Consider their interest rates. But also look at qualification requirements, loan limits, fees, and the length of draw and repayment periods. Try to spot the lenders that have the best scenario for your needs.
Step 3: Gather Your Documents
Make sure that you have all the documents you need for your HELOC application close at hand. These typically include proof of income, including recent pay stubs and your most recent W-2. Keep your employment history handy, along with home insurance documents, bank statements, and your most recent tax filing.
Step 4: Submit Your Application
Double-check all the information and be sure you’ve filled in every blank, because errors and omissions slow the application process. Then submit your application. This can generally be accomplished online, although some lenders work over the phone or in person.
Step 5: Get an Appraisal
A home appraisal is usually needed in the HELOC application process. The lender will let you know what is necessary. Schedule the visit promptly (if one is required) because delays will cause the application process to grind to a halt. The appraisal serves the purpose of determining the maximum amount you can borrow, which is based on your home’s value and the equity you have in it.
Step 6: Prepare for Closing
Wait for the HELOC approval. Then, before you can access the funds, you will need to sign documents and pay any required fees. Some lenders make funds available in as little as three days following the finalizing of the HELOC agreement.
Tax Benefits and Considerations
Homeowners can deduct HELOC interest if the borrowed funds are used for buying, building, or significantly improving their primary residence. The deduction is limited to interest on the first $375,000 of the principal for individual taxpayers ($750,000 for married couples who file jointly). A tax advisor can help you navigate the specific tax implications and confirm eligibility for this deduction.
Closing Costs and Fees
HELOC closing costs are lower than typical home-buying or refinancing costs. An appraisal fee of $300 to $500 is usually the highest expense. Other costs include application, origination, and administrative fees. Some lenders charge annual maintenance, transaction, inactivity, or early termination fees. Understanding these costs can help you weigh the pros and cons of different HELOC offers.
Alternatives to HELOCs
There are other ways besides HELOCs to borrow money, of course. You might want to consider one or more of these options, so it pays to be familiar with them before you borrow.
Home Equity Loan
This borrowing option is often confused with a HELOC, so it’s important to understand what is a home equity loan and how it’s different from a HELOC. Unlike HELOCs, home equity loans provide a lump sum amount and are paid back at a fixed interest rate. Borrowers can usually access up to 85% of the equity built in their home through a home equity loan (as opposed to 90% with a HELOC).
Here’s a quick look at HELOCs vs. home equity loans:
| HELOC | Home Equity Loan | |
|---|---|---|
| Type | Revolving line of credit | Installment loan |
| Interest Rate | Usually variable-rate | Usually fixed-rate |
| Repayment | Repay only what you borrow; you may have the option to make interest-only payments during the draw period. | Starts immediately at a set monthly payment |
| Disbursement | Charge only the amount you need. | Lump sum |
Cash-Out Refinance
Homeowners can get cash by undertaking a mortgage refinance for more than they owe. This option offers a large lump sum. But if you have a low mortgage rate with your current home loan, it may not make sense — you’ll need to run the numbers to see how both your monthly payments and your total interest paid would change with a new loan. Another factor to consider in the cash-out refinance vs. home equity line of credit: A HELOC will leave you with a second payment each month. A cash-out refi means you’ll have one payment.
Personal Loan
A personal loan is a flexible, typically unsecured loan that you pay back in regular, fixed payments over a set term of 2 to 7 years. Personal loans can be used for various purposes, including home improvements, debt consolidation, and other expenses. It’s important to understand that a personal loan, because it is not secured by your home, may have a higher interest rate than a HELOC or home equity loan. Some borrowers are willing to pay that because they prefer not to use their home as collateral.
Credit Cards
Credit cards typically come with higher interest rates than HELOCs, which can make them much more expensive if you carry a large balance from month to month. While credit cards offer flexibility for smaller purchases, types of HELOCs or home equity loans may be better suited for larger expenses such as home improvements or debt consolidation.
The Takeaway
HELOCs available in the state of Oregon come with competitive interest rates and flexible repayment terms, making them an attractive option for homeowners seeking to leverage their home equity. By comparing Oregon HELOC rates offered by various lenders, you can secure the most advantageous deal that aligns with your specific financial requirements and objectives.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
FAQ
What’s the monthly payment on a $50,000 HELOC?
With an 8.00% interest rate and a 10-year term, your monthly payment will be about $607. But how much you’ll pay will be based on your specific interest rate and loan term. If you had the same 8.00% interest rate but repaid what you borrowed with interest over a 20-year term, it would cost $418 per month, although you would pay more total interest with the 20-year term.
Is a HELOC a good idea right now?
Whether a HELOC is a smart move depends on your finances and goals. HELOCs can be useful for home improvements, debt consolidation, and other large expenses. However, it’s important to think through the interest rates, fees, and potential impact on your home equity before making a decision. (Owing money on a HELOC will eat into your equity until you have repaid what you borrow.)
What is the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 HELOC depends on the interest rate and how long a term you’ve chosen. At a 6.00% interest rate over 20 years, the payment would be $716 per month. Repaying it at a 7.50% interest over 20 years would cost $806 a month. An interest rate of 8.00% and the same 20-year term means a payment of $836.
What are the benefits of a HELOC?
A HELOC is a flexible way to borrow. Rather than withdraw a lump-sum loan, you can borrow in increments as you need funds, and at a rate that is typically lower than you would get with a credit card. Best of all, you only pay interest on what you have actually borrowed.
Do you need an appraisal for a HELOC?
Yes, an appraisal is a crucial step in the process of obtaining a HELOC, as it helps to establish the value of your home, which in turn determines the amount you can borrow. Lenders want to make sure your loan is secured by adequate equity in your home. Your lender will provide details about the appraisal process.
What disqualifies you from getting a home equity loan?
There are a few factors that can disqualify you from getting a home equity loan, including bad credit, not enough equity in your home, and a high level of debt relative to your income.
How difficult is it to get a HELOC?
Assuming you can meet lenders’ requirements of a healthy credit score and debt levels, and you have a minimum of 15% home equity, it shouldn’t be too challenging to get a HELOC. The hardest part for many would-be borrowers is compiling the financial documents needed for the application. But taking the time to do that with care will help move the application process along more quickly.
Does HELOC affect credit score?
When you apply for a HELOC, the lender will perform a hard inquiry on your credit report, which could cause a temporary dip in your credit score. Carrying a large balance on your HELOC could negatively impact your credit utilization ratio and lower your credit score. But making regular payments toward your HELOC will show you can use credit responsibly and that should reflect favorably on your score.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q424-047
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Current HELOC Rates in Oklahoma Today
OKLAHOMA HELOC RATES TODAY
Current HELOC rates in
Oklahoma.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in Oklahoma.
Key Points
• HELOCs in Oklahoma are commonly used for home improvements, debt consolidation, education funding, and other large investments.
• A HELOCs has two phases: the draw period and the repayment period.
• To secure the best HELOC rates in Oklahoma, prioritize building your credit score, keeping your job situation stable, and paying down credit card debt.
• HELOC interest rates are based on the prime rate, which fluctuates with economic conditions.
• Alternatives to HELOCs include home equity loans, cash-out refis, and personal loans; each has its own pros and cons.
Introduction to HELOC Rates
Welcome to SoFi’s guide to HELOC interest rates in Oklahoma. Our goal is to help Sooner State homeowners understand all the factors influencing interest rates where you live and how to secure the best deal on a home equity line of credit. We’ll walk you through the application process and share tricks for making a good impression with lenders. Whether you’re looking to fund home improvements, consolidate debt, or make another large investment, this guide will help you navigate the world of HELOCs effectively — and of course, get the best possible deal.
To kick things off, we’ll talk about what is a home equity line of credit?
What Is a HELOC?
If you’re considering how to get equity out of your home, you’ve likely come across the term HELOC before. A HELOC, also known as a home equity line of credit, is a revolving credit line similar to a credit card. The amount you can borrow depends on your equity position: your home’s value minus your mortgage balance. Homeowners can typically borrow up to 90% of their equity, which is determined by an appraisal. HELOCs are a popular way to fund big-ticket items because their interest rates are low compared to personal loans and credit cards.
HELOCs have two phases:
The Draw Period
During the draw period, typically lasting 10 years, you can access funds up to your credit limit. Interest payments are usually required during this period, but principal payments may be optional. If you do pay down the principal, you can borrow that money again. One advantage of a HELOC is that you withdraw from it only what you need, and you pay interest only on the amount you’ve withdrawn.
Using a HELOC interest-only calculator can help you predict your minimum monthly payment during the draw period.
The Repayment Period
HELOC repayment period lasts 10 to 20 years. Borrowing ends, and you repay the principal with interest. However, the variable interest rate will fluctuate, making monthly payments somewhat unpredictable. You can use a HELOC repayment calculator to predict your payments and budget accordingly.
Where Do HELOC Interest Rates Come From?
While you don’t need to become an interest rate expert, it helps to understand the factors involved. HELOC interest rates in Oklahoma are linked to the prime rate, as well as the Fed’s interest rate decisions. With a little luck, you can anticipate rate fluctuations and make better decisions about when to apply for a HELOC.
How Interest Rates Impact HELOC Affordability
Interest rates significantly impact the affordability of a HELOC. When it’s time to repay a $60,000 HELOC, having an interest rate of 8.00% would mean a payment of $502. With a 9.00% rate, your payment jumps to $540. Even more important, over the entire 20-year repayment term, the customer with the 9.00% rate would pay $9,000 more in interest. The more you borrow and the higher the interest rate, the larger these numbers get. This is why it pays to research the best HELOC rates in Oklahoma.
HELOC Interest Rate Trends
The movement of the prime interest rate serves as an indicator of future HELOC rate trends. Since 2018, the prime rate has undergone substantial fluctuations, ranging from a low of 3.25% in 2020 to a high of 8.50% in 2023. The graphic below shows a longer history of the average prime rate over the last 50 years.
Historical Prime Interest Rate
| Date | U.S. Rate |
|---|---|
| 9/19/2024 | 8.00% |
| 7/27/2023 | 8.50% |
| 5/4/2023 | 8.25% |
| 3/23/2023 | 8.00% |
| 2/2/2023 | 7.75% |
| 12/15/2022 | 7.50% |
| 11/3/2022 | 7.00% |
| 9/22/2022 | 6.25% |
| 7/28/2022 | 5.50% |
| 6/16/2022 | 4.75% |
| 5/5/2022 | 4.00% |
| 3/17/2022 | 3.50% |
| 3/16/2020 | 3.25% |
| 3/4/2020 | 4.25% |
| 10/31/2019 | 4.75% |
| 9/19/2019 | 5.00% |
| 8/1/2019 | 5.25% |
| 12/20/2018 | 5.5% |
| 9/27/2018 | 5.25% |
Source: U.S. Federal Reserve
Historical U.S. Prime Rates
Factors Influencing HELOC Rates
Not everyone gets the prime rate. Other metrics factor into the interest rate that you’re offered, such as your home equity position, credit score, income, and combined loan-to-value (CLTV) ratio.
Home Equity
Having substantial equity in your home makes you appear less risky to lenders, potentially leading to lower interest rates. Homeowners typically need at least 15% equity in their property to qualify for a HELOC. Using a home equity loan calculator can help you determine your equity.
Credit Score
Maintaining a credit score of 680 or higher is needed to qualify for a HELOC. But a credit score of 700 or above will secure you a better interest rate.
Stable Income
Lenders assess your overall income to make an informed judgment regarding your ability to repay the HELOC. A consistent and stable income serves as a strong indicator of a lower risk of default.
Loan-to-Value Ratio
Lenders often require a combined loan-to-value ratio of 90% or less. If your home’s value is $500,000, your mortgage balance is $300,000, and your HELOC balance is $100,000, your combined LTV ratio is 80%: $300,000 + $100,000 / $500,000.
Variable vs Fixed Interest Rates
HELOCs feature variable interest rates, which are subject to change during the repayment term. While variable rates often start lower than fixed rates, they can adjust either upward or downward in response to market conditions.
Tools & Calculators
Financial calculators are designed to assist you in accurately estimating your payments and gaining a clear understanding of the financial implications associated with various financing options. Here are three of our favorites.
Run the numbers on your HELOC.
-
Home Equity Loan Calculator
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Qualify for a Competitive HELOC Rate
To qualify for the most favorable HELOC rates available in the state of Oklahoma, it is recommended that you prioritize building your credit score. The factors below collectively exert a substantial influence on the interest rates you’re offered.
Cultivate Your Credit Score
Maintaining timely bill payments and reducing credit card balances can significantly boost your credit score. A higher credit score makes you a more attractive candidate for a home equity line of credit, as it demonstrates your responsible financial behavior and ability to manage debt effectively.
Assess Your Home Equity
The first step when you’re considering different types of home equity loans and lines of credit is to assess your equity stake. Subtract your mortgage balance from your home’s value, then divide the result by the home value to get a percentage. While lenders will use an in-person appraisal to pinpoint your home value, you can use an online estimate from a real estate site.
Regular mortgage payments help in building home equity over time. Home equity can also be enhanced through renovations that boost the property’s value. Increased home equity can lead to better terms and higher amounts when applying for a HELOC.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is how much you owe in monthly debt payments (student loans, car loan, etc) divided by your gross monthly income. Home equity lenders generally look for a DTI that’s below 36%, but the lower your DTI, the better. A lower DTI can help you secure more favorable terms on your HELOC.
Application Process for a HELOC in Oklahoma
The application process for a HELOC in Oklahoma involves several steps, including assessing your financial health, comparing rates, preparing documentation, and undergoing a home appraisal.
Step 1. Run the Numbers
Check your credit score, calculate your DTI, and get a good estimate of your home equity before you apply for a HELOC. Some lenders offer online prequalification tools to streamline this process.
Step 2. Compare Lenders
See what offers you might qualify for when it comes to interest rates, but also compare their qualification requirements, credit line minimums and maximums, fees, and the length of the draw and repayment periods they’re offering.
Step 3: Gather Your Documents
When you’re ready to apply for a HELOC, make sure you have all the necessary documents in order. This typically includes proof of income, a detailed employment history, credit reports, and documentation verifying your home’s value and insurance coverage. This can help expedite the application process.
Step 4: Submit Your Application
Submitting your HELOC application takes place online, by phone, or in person. Ensure all information is accurate and complete to avoid any delays.
Step 5: Get an Appraisal
A home appraisal is a pivotal step in the HELOC process. If the valuation of your home surpasses the outstanding balance of your mortgage, there’s a strong likelihood that the lender will grant approval for your HELOC.
Step 6: Prepare for Closing
Before accessing your HELOC funds, you must sign documents and pay necessary fees. It is possible for some lenders to make funds available within a three-day time frame subsequent to the closing of the home equity line of credit.
Tax Benefits and Considerations
Homeowners may be able to deduct their HELOC interest if the funds are used for buying, building, or significantly improving their primary residence. Interest deductions are limited to the first $375,000 of the principal for individual taxpayers ($750,000 for married couples filing jointly). Consulting a tax advisor can help you navigate the specific tax implications and confirm eligibility for deductions.
Closing Costs and Fees
HELOC closing costs are usually lower than traditional home-buying or cash-out refinance costs. The appraisal fee, ranging from $150 to $600, is typically the highest expense. Other fees may include application, origination, and administrative charges. An annual maintenance fee and potential transaction or inactivity fees may also apply. Some lenders offer reduced or waived closing costs in exchange for a higher interest rate.
Alternatives to HELOCs
Just as there are different kinds of home loans when you purchase a residence, you have different options for leveraging your home equity. Each has distinct advantages, depending on your financial situation.
Home Equity Loan
What is a home equity loan? Unlike a HELOC, you receive a lump sum amount that you immediately pay back in regularly monthly installments. Because the interest rate is fixed, the payment never changes over the life of the loan — making budgeting a little easier.
If this sounds more your speed, check out our comparison of the HELOC vs Home Equity Loans.
Cash-Out Refinance
A type of mortgage refinance, a cash-out refi allows homeowners to refinance their mortgage for more than they owe and take the difference in cash. This can be helpful for those who need a large sum of money up front. But if mortgage rates are higher now than on your existing mortgage, this might not be the right choice for you.
Our Cash-Out Refinance vs Home Equity Line of Credit guide can help you decide.
Personal Loan
A personal loan is a flexible, typically unsecured loan that you pay back in regular, fixed payments over a term of 2-7 years. Personal loans do not require collateral, unlike HELOCs, but for that reason their interest rates are typically higher.
Credit Cards
Credit cards usually come with much higher interest rates than HELOCs, which can make them more expensive if you carry a large balance from month to month. While credit cards offer flexibility for smaller purchases, HELOCs are better suited for larger expenses such as home improvements or debt consolidation.
The Takeaway
When searching for the best HELOC rates in Oklahoma, it’s important to compare multiple lenders and understand the terms and conditions of each offer. HELOCs can be a valuable financial tool for homeowners looking to leverage their home equity, but it’s essential to manage them responsibly to avoid financial strain. Building your credit score and paying down credit card debt can help borrowers secure the lowest available interest rate, which will save them considerable money over the long term.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
FAQ
What is the monthly payment on a $50,000 HELOC?
Let’s assume you draw the full amount and make interest-only payments during the draw period. With an 8.00% interest rate and a 10-year term, your monthly payment will be about $607. An 8.00% interest rate over a 20-year term would cost $418 per month, but you’ll pay more interest in the long run.
Is a HELOC a smart move for you?
A home equity line of credit (HELOC) can be a convenient financial tool for homeowners with a steady income, strong credit, and ample home equity. However, because a HELOC is secured by your home, if you default you could face foreclosure.
What is the monthly payment on a $100,000 HELOC?
The monthly payment on a $100,000 home equity line of credit is determined by the interest rate and term. If you draw the full amount, have an 8.50% interest rate, and repay what you borrowed (plus interest) over a 20-year term, your monthly payment should be about $868.
What are the benefits of a HELOC?
The benefits of a HELOC include flexible access to funds, competitive interest rates, and potential tax advantages. A HELOC can provide a financial safety net for major expenses, but it’s important to use it responsibly.
Do you need an appraisal for a HELOC?
Yes, you typically need an appraisal for a HELOC. The appraisal helps determine the value of your home, which is a key factor in calculating your borrowing limit.
What might prevent you from getting a home equity loan?
Several factors can disqualify you from getting a home equity loan, including insufficient home equity (below 15%), a low credit score (below 680), or a high debt-to-income ratio (over 50%).
How difficult is it to get a HELOC?
The difficulty of getting a HELOC depends on your financial situation and the lender’s requirements. Factors such as your credit score, home equity, and debt-to-income ratio play a significant role in qualifying for a HELOC. It’s important to compare lenders and understand their qualification criteria when applying.
Does HELOC affect credit score?
A HELOC may affect your credit score. Applying can cause a hard inquiry, lowering your score a bit. Using a large portion of available credit can increase credit utilization, also dinging your score. However, managing a HELOC responsibly and making timely payments can help borrowers maintain a good credit score.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q424-046
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Current HELOC Rates in North Carolina Today
NORTH CAROLINA HELOC RATES TODAY
Current HELOC rates in
North Carolina.
Disclaimer: The prime rate directly influences the rates on HELOCs and home equity loans.
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Compare HELOC rates in North Carolina.
Key Points
• To secure the best North Carolina home equity line of credit rates, homeowners should compare offers, reduce debt, and maintain their home equity level.
• Understanding the factors influencing HELOC rates in North Carolina, such as the prime rate and economic trends, can help borrowers be aware of rate changes.
• HELOCs offer flexibility with a 10-year draw period and a 10- or 20-year repayment period
• There is a risk of foreclosure with a HELOC if borrowers default.
• Maintaining a strong credit score, steady income, and low debt-to-income ratio is crucial for securing favorable North Carolina HELOC rates.
Introduction to HELOC Rates
Understanding the home equity line of credit and how to get the best interest rate possible is crucial if you’re looking to get equity out of your home. A HELOC allows borrowers to access funds based on their home’s value. This article provides a comprehensive overview of HELOC rates and the HELOC process in North Carolina. Readers will learn about the factors influencing rates, how to compare offers, and the strategies to employ to secure the best deals. We’ll even cover alternatives to HELOCs and different types of home equity loans. We’re going to start with the basics: What is a HELOC, anyway?
What Is a HELOC?
HELOCs function somewhat like a credit card, but they are secured by your home. You apply for a HELOC and, if accepted, are given a credit line with a limit. You can borrow up to that limit in increments as you need the funds, and you can repay what you borrowed (with interest) and borrow again repeatedly during the initial “draw” phase of the HELOC.
Lenders often allow homeowners to borrow up to 90% of their home value with a HELOC (minus whatever they owe on their mortgage). HELOCs often have lower interest rates than credit cards and personal loans. But their interest rates are often variable and can shift up or down over time. The major downside of a HELOC is that you risk foreclosure if you default.
HELOCs have two phases: After the draw period, there is a repayment term. It’s important to understand how they differ.
The Draw Period
During a HELOC’s 10-year draw period, you can access funds, make payments, and borrow again. Interest payments are usually required, but principal payments may be optional. This flexibility makes HELOCs versatile financial tools. A HELOC interest-only calculator can show you what interest-only payments would look like during the draw period of a HELOC.
The Repayment Period
During what is typically a 10- or 20-year repayment period, borrowers repay what they have borrowed, with interest. A HELOC repayment calculator is useful during this time as you can type in your interest rate and see how monthly payments will be affected by a rate change.
Where Do HELOC Interest Rates Come From?
Interest rates are important to the overall cost of your HELOC, so it’s important to understand the factors that might affect the rate you will be offered, as well as the rate shifts you’ll experience over the life of your HELOC. At the most basic level, HELOC rates are driven by lenders’ prime rates — the rate each lender offers their most creditworthy customers. Prime rates are dictated to some extent by rates set by the Federal Reserve.
How Interest Rates Impact HELOC Affordability
HELOC interest rates significantly impact affordability over both the draw and repayment periods. The chart below shows how a shift in the interest rate or the repayment term affects your monthly payments as well as the total amount of interest paid over the life of the HELOC.
| Loan Amount | Loan Term | Interest Rate | Monthly Payment |
|---|---|---|---|
| $100,000 | 20 years | 8.00% | $836 |
| 7.00% | $775 | ||
| 10 years | 8.00% | $1,213 | |
| 7.00% | $1,161 | ||
| $50,000 | 20 years | 8.00% | $418 |
| 7.00% | $388 | ||
| 10 years | 8.00% | $607 | |
| 7.00% | $581 | ||
| $25,000 | 20 years | 8.00% | $209 |
| 7.00% | $194 | ||
| 10 years | 8.00% | $303 | |
| 7.00% | $290 |
HELOC Interest Rate Trends
Don’t be surprised if you find yourself paying close attention to news of the prime rate and Fed policy in the weeks leading up to your HELOC application. Having a sense of the history of the average prime rate can give you valuable perspective on current rates.
The chart below shows that since 2018, the prime rate has ranged from a low of 3.25% in 2020 to a high of 8.50% in 2023. And the graphic below shows a much longer period of time. As you can see, rates under 4.00% are relatively uncommon, as are rates that top 10.00%.
Historical Prime Interest Rate
| Date | U.S. Rate |
|---|---|
| 9/19/2024 | 8.00% |
| 7/27/2023 | 8.50% |
| 5/4/2023 | 8.25% |
| 3/23/2023 | 8.00% |
| 2/2/2023 | 7.75% |
| 12/15/2022 | 7.50% |
| 11/3/2022 | 7.00% |
| 9/22/2022 | 6.25% |
| 7/28/2022 | 5.50% |
| 6/16/2022 | 4.75% |
| 5/5/2022 | 4.00% |
| 3/17/2022 | 3.50% |
| 3/16/2020 | 3.25% |
| 3/4/2020 | 4.25% |
| 10/31/2019 | 4.75% |
| 9/19/2019 | 5.00% |
| 8/1/2019 | 5.25% |
| 12/20/2018 | 5.5% |
| 9/27/2018 | 5.25% |
Source: U.S. Federal Reserve
Historical U.S. Prime Rates
Factors Influencing HELOC Rates
The prime rate is important, but there are several other factors that lenders use to help them determine what HELOC rate to offer an applicant:
Home Equity
Generally, a minimum of 15% to 20% equity is required to qualify for a HELOC. But having more significant home equity places you in a lower-risk category for lenders, potentially leading to reduced interest rates.
Credit Score
A credit score of 680 or higher is a solid entry point for a HELOC, but again, higher is better and some lenders like to see a score of 700 or more.
Stable Income
A steady stream of income serves as a reliable indicator of reduced default risk, which often translates into more favorable HELOC rates. By maintaining consistent employment and a steady income, you can significantly bolster your prospects of securing advantageous terms for your HELOC.
Loan-to-Value Ratio
Most lenders require your combined loan-to-value ratio to be 90% or less. (Your CLTV is your current mortgage principal owed plus the amount you wish to borrow divided by your home’s appraised value.)
Variable vs Fixed Interest Rates
As noted above, HELOCs typically have variable interest rates, which will fluctuate over the loan term. Variable interest rates start out lower than typical fixed rates but will adjust up and down with market conditions. When you compare HELOCs vs. home equity loans, this is a primary point of difference. Home equity loans tend to have a fixed rate.
Tools & Calculators
Online calculators can help you determine how large a HELOC you might be eligible for and how much your monthly payments would be based on different interest rates. They can also show you the total cost of your HELOC.
Run the numbers on your HELOC.
-
Home Equity Loan Calculator
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
-
HELOC Payment Calculator
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
-
HELOC Interest Only Calculator
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay .
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Qualify for a Competitive HELOC Rate
To secure the most favorable HELOC rates available in North Carolina, it is advisable to focus on enhancing your credit score, maintaining a steady source of income, and managing your debt-to-income ratio effectively. Here are some pointers:
Take Care of Your Credit Score
By maintaining timely payments and reducing credit card balances, you can enhance your credit score, which is a crucial factor in securing more favorable HELOC rates. Regularly reviewing your credit report and addressing any discrepancies can further strengthen your creditworthiness.
Assess Your Home Equity
You’ll probably need at least 15% home equity in order to qualify for HELOC. To determine whether you’ve hit that mark, look up your home’s value on a real estate site. Subtract whatever you owe on your mortgage. Then divide that number by the home value. The more equity you have, the better terms and higher HELOC limit you will likely qualify for.
Calculate Your Debt-to-Income Ratio (DTI)
Your DTI ratio is how much you owe in monthly debt payments divided by your gross monthly income. Home equity lenders generally look for a DTI that’s below 50%, and some prefer below 36%. Managing your DTI is crucial for securing favorable terms on a HELOC.
Application Process for a HELOC in North Carolina
The application process for a HELOC in North Carolina involves several steps. These include evaluating your financial situation, comparing HELOC rates in North Carolina, gathering the necessary documentation, and submitting your application. Understanding the process can help you navigate it more efficiently.
Step 1. Run the Numbers
Some lenders allow prospective borrowers to prequalify for a home equity line of credit online, which streamlines the application process. These lenders will calculate your DTI ratio and equity. If you don’t prequalify online, you’ll need to do the math by hand. First make sure you have at least 15% equity. Then see if you have a DTI ratio of less than 36%. If you tick both boxes, move on to Step 2.
Step 2. Compare Lenders
Look at interest rates from multiple lenders, and also compare their qualification requirements, credit line minimums and maximums, fees, and the lengths of their draw and repayment periods.
Step 3: Gather Your Documents
Putting together the paperwork (even if you apply online) is a crucial step in the HELOC application process. Typically, you’ll need to provide proof of income, like pay stubs or tax returns, and disclose the balance on your mortgage. Lenders may want to see your homeowner’s insurance coverage and a list of your current assets and debts.
If you’re self-employed, prospective lenders may ask for a profit-and-loss statement and two years’ tax returns. Having these documents ready can speed the application process and improve your chances of securing a competitive HELOC rate.
Step 4: Submit Your Application
Submitting your HELOC application online or in person is the next step. Submitting a complete and accurate application increases your chances of approval and helps you secure competitive HELOC rates in North Carolina.
Step 5: Get an Appraisal
After you submit your application, a lender will usually request a home appraisal. This might be an in-person appraisal, or a lender may use an automated valuation model (AVM) appraisal, where an algorithm uses existing data to compute a home’s estimated value. The appraisal helps confirm the amount of equity you have in your home, which affects your HELOC rate. A higher appraisal value can lead to a larger line of credit.
Step 6: Prepare for Closing
Once you find a HELOC offer with a comfortable interest rate and terms, you’re ready to close. Before accessing your funds, you’ll sign documents and pay necessary fees. Lenders can make funds available as quickly as three days following the closing of the HELOC. Ensuring all paperwork is in order and fees are paid promptly helps you access your funds quickly and efficiently.
Tax Benefits and Considerations
Homeowners can deduct HELOC interest if the borrowed funds are used for buying, building, or significantly improving their primary residence. Deductions are limited to interest on the first $375,000 of the mortgage principal for individual taxpayers ($750,000 for married couples filing jointly). Consult a tax advisor to confirm eligibility. You will need to itemize your return to take this deduction.
Closing Costs and Fees
HELOC closing costs are lower than typical home-buying or cash-out refinance costs. Appraisal fee, usually the highest expense, ranges from $300 to $500. Other costs include application, origination, and administrative fees. Some lenders charge annual maintenance and transaction fees. Lenders may waive closing costs but when this happens, they tend to charge a higher interest rate.
Alternatives to HELOCs
In addition to HELOCs, there are other financing options — even a special type of mortgage refinance that can help you capitalize on your home equity. Here are the more popular borrowing methods.
Home Equity Loan
Homeowners who are interested in a HELOC also often wonder what is a home equity loan. Unlike HELOCs, home equity loans provide a lump sum and are paid back at a fixed interest rate. Borrowers begin paying back the principal, plus interest, immediately after receiving the funds. You can usually access up to 85% of your home equity through a home equity loan (as opposed to 90% with a HELOC).
Cash-Out Refinance
Homeowners can get cash by refinancing their mortgage for more than they owe. Some borrowers like the fact that the refi leaves them with one monthly payment (versus two when you add a HELOC or home equity loan to an existing mortgage).
As you’re thinking about a cash-out refinance vs. a home equity line of credit, one consideration is that a refi will leave you with a new interest rate. If your current home loan has a better interest rate than is now available in North Carolina, a refi may not make sense. You’ll want to compute the total cost of borrowing with the refi and compare it to a HELOC or home equity loan.
Personal Loan
A personal loan is repaid in consistent payments over a predetermined period that typically ranges from two to seven years. Personal loans are unsecured, so the interest rate will likely be higher than that of a HELOC or home equity loan.
Credit Cards
Credit cards typically come with higher interest rates than HELOCs, which can make them much more expensive if you carry a large balance from month to month. While credit cards offer flexibility for smaller purchases, a HELOC may be better suited for larger expenses.
The Takeaway
HELOCs offer a flexible way to access the equity in your home, and with a little preparation, you can better your chances of obtaining the best available HELOC interest rate in North Carolina. By understanding current rates and the factors influencing them, you can make an informed decision about your home equity line of credit. Comparing offers from multiple lenders and maintaining a strong credit score are also key to securing the best rates.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
Unlock your home’s value with a home equity line of credit brokered by SoFi.
FAQ
What is the monthly payment on a $50,000 HELOC?
With an 8.00% interest rate, your monthly payment will be about $607, assuming you are repaying the $50,000 over a 10-year term. But precisely how much you’ll pay will depend on your interest rate and loan term. The same 8.00% interest rate over a 20-year term would cost you $418 per month.
Is a HELOC a good idea right now?
Because HELOCs usually have lower interest rates than unsecured loans or credit cards, a HELOC tends to be a good way to borrow if you need a large sum — and especially if you aren’t sure exactly how much money you will need and when, exactly, you will need it. But of course, whether a HELOC is a good idea for you will depend on your financial situation. If you are having trouble paying your current home loan or credit cards on time, it might not be a great time to borrow more.
What is the monthly payment on a $100,000 HELOC?
The best way to ascertain the monthly payment for a $100,000 HELOC is to utilize a HELOC monthly payment calculator, because the payment amount will vary according to your interest rate, which changes from time to time, and the repayment term (10 versus 20 years).
What are the benefits of a HELOC?
Perhaps the greatest benefit of a HELOC is that it is very flexible: You can borrow what you need when you need it (up to your credit limit) and you only pay interest on the sum that you borrow. HELOCs also offer potentially lower interest rates compared to credit cards. Additionally, interest paid on a home equity line of credit may be tax-deductible, depending on how the funds are used.
Do you need an appraisal for a HELOC?
Yes, you typically do need an appraisal for a HELOC. The appraisal helps the lender determine the current value of your home, which is crucial for calculating the amount of equity you can borrow. An accurate appraisal is essential for securing a home equity line of credit.
What might prevent you from getting a home equity loan?
Several factors can disqualify you from getting a home equity loan. These include a low credit score, high debt-to-income ratio, insufficient home equity, and a history of late payments or default.
How difficult is it to get a HELOC?
The difficulty of getting a HELOC depends on your financial situation. Lenders consider factors such as your credit score, debt-to-income ratio, and home equity. To improve your chances, focus on maintaining a strong credit score, reducing debt, and increasing your home equity. Comparing offers from multiple lenders can also help you find the best terms for your HELOC; the difficulty level may be different from one lender to another.
Does a HELOC affect credit score?
Having a HELOC can affect your credit score. When you apply for the line of credit, the lender will do a hard credit inquiry, which causes a temporary dip in your score. Using a significant portion of your HELOC may increase your credit utilization ratio, potentially dinging your score. On the up side, timely payments can positively affect your credit score.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q424-043
More HELOC resources.
-
What is a Home Equity Line of Credit
-
Different Types of Home Equity Loans
-
HELOC vs Home Equity Loan: How They Compare
Turn your home equity into cash. Call us for a complimentary consultation or get prequalified online.
Week Ahead on Wall Street: All About Jobs
New Year, Same Focus
Even though the calendar pages have turned, the key themes driving financial markets in these early January days look to remain the same: Consumer strength, corporate earnings growth, and risks to the Federal Reserve’s dual mandate of price stability and maximum employment will likely continue to drive markets.
This week brings important updates to related data, including job openings and consumer sentiment. But the spotlight will be on Friday’s December jobs report, which continues to be one of the most closely watched economic releases each month. This jobs report feels especially important considering Fed officials revised their economic projections for 2025 to show lower unemployment and fewer interest rate cuts. Could the latest look at the labor market sway these forecasts again?
In addition, Fed Chair Jerome Powell said that while progress on lowering inflation has been bumpy, it’s still on the way down. But investors don’t seem convinced, with securities like inflation swaps and Treasury yields suggesting inflation concerns are picking up again. All that’s to say that an unemployment surprise this week could inject significant volatility into both stock and bond markets, as investors have to think about what the jobs data means for monetary policy, as well as coming inflation data. A strengthening labor market might suggest improving consumer demand, which could be a leading indicator of rising inflation, while a weakening labor market could point to the opposite.
Economic and Earnings Calendar
Monday
• December S&P Global US PMIs: These indexes track how purchasing managers across different industries feel about the business environment.
• November Factory and Durable Goods Orders: These metrics give insight into underlying trends for leading cyclical indicators.
• Fedspeak: Fed Governor Lisa Cook will deliver a keynote speech at the University of Michigan Law School.
Tuesday
• November Trade Balance: Trade, made up of exports and imports, is an important driver of economic activity.
• November Job Openings: A key measure of business demand for labor is the number of job openings, since reducing openings is easier for companies and preferable to layoffs.
• December ISM Services PMI: This index from the Institute for Supply Management tracks how purchasing managers across different services industries feel about the business environment.
• Fedspeak: Richmond Fed President Thomas Barkin will give a speech to the Greater Raleigh Chamber on the economy.
Wednesday
• December ADP Employment Report: This survey, usually released a day or two before the official government jobs report, offers insight into private sector employment trends.
• FOMC Meeting Minutes: The Federal Reserve releases detailed notes of every FOMC meeting three weeks after their conclusion. Investors often look for more information on Fed officials’ views for hints on the outlook for interest rates and the economy.
• November Consumer Credit: Borrowing activity gives insight into broader economic activity.
Thursday
• December Challenger Job Cuts: The firm Challenger, Gray & Christmas tracks the number of layoff announcements each month by sector.
• November Wholesale Inventories and Sales: Wholesalers often operate as an intermediary between manufacturers and retailers, serving as a key part of the goods supply chain.
• Fedspeak: Philadelphia Fed President Patrick Harker will discuss the economic outlook. Richmond Fed President Barkin will speak to the Virginia Bankers Association and the Virginia Chamber of Commerce about the economy. Kansas City Fed President Jeff Schmid will speak to the Economic Club of Kansas City.
• Earnings: Constellation Brands
Friday
• December Employment Situation Summary: This monthly blockbuster release from the Labor Department gives a comprehensive look at employment, wages, and hours worked in the previous month.
• January University of Michigan Consumer Sentiment: How consumers feel about economic conditions affect their spending habits. This survey places a particular focus on inflation and its trajectory.
• Earnings: Delta Air Lines, Walgreens Boots Alliance
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
OTM2025010602
Read more
Dear SoFi, I’m 41 years old. Where do I start at my age?!
Dear SoFi, I’m 41 years old. Where do I start at my age?!
(submitted by Tina L. via SoFi’s Ambition Club on Facebook)
Dear Tina,
This is a broad question, but it sounds like you’re feeling late to the party. And you should know that plenty of people get overwhelmed by their financial situation and worry that they aren’t doing what they “should” be doing at a certain stage in life.
Thankfully, it’s never too late to take charge of your finances, and there are several good places to start.
Now, we don’t know your circumstances, but being in your 40s may mean you’re adapting to — or anticipating — some new responsibilities, like owning a house, having children or earning a more established income. Maybe you’re feeling behind because you have debt, lost a job, haven’t been building a savings, or just hadn’t thought much about managing your money before now.
No matter your situation and why you’re asking, don’t beat yourself up. Nearly half of Americans surveyed by Bankrate last year said their finances were negatively affecting their mental health. And as a country, we’re not where we need to be with financial literacy: On average, U.S. adults can only correctly answer basic financial knowledge questions about half the time.
Let’s begin with some simple steps that can give you (or anyone) more direction.
1. Start by taking a financial inventory. This should include what you have (any savings or investments) and what you owe (through credit-card debt, auto or student loans, a mortgage, etc.) Also check your bank statements to figure out what your total expenses are, on average, each month.
2. Use your inventory to set and then prioritize goals for yourself. Defining the things you want will help you to stay motivated. Maybe you’re tired of that relentlessly high credit card balance or worried about being unprepared for retirement. Maybe you want to take a vacation, renovate your bathroom, or make sure another major car repair doesn’t set you back like the last one. Whatever your goals, keep these two general rules of thumb in mind. If you don’t have a safety net — savings equal to one month’s worth of expenses — tackle that first. And if you have what we call “bad” debt (like a balance on a high-interest credit card,) work on paying that down second.
3. Set up an emergency fund. Now that you’ve got that safety net, start building a bigger emergency fund. Generally we suggest setting aside enough to cover your living costs for three to six months, but there are emergency savings calculators to help you determine the ideal amount. (Here’s ours.) This should be established before you look into saving for long-term goals like retirement or your kids’ college education because the last thing you want is to be forced to put a large one-off expense on a high-interest credit card.
4. Track your spending so you can create a budget. Mark what is a need versus a want. Ask yourself how much income you can free up by cutting back on your wants. This will help you determine whether you have wiggle room for saving or paying down debt faster. If there aren’t many wants, and you’re in the red most months, you’ll want to consider bigger, harder changes such as moving or trading in your car for a lower-cost model. But if you do have non-essential expenses, maybe you decide to eat out less frequently, make coffee at home, or take on some DIY house projects. (You might even discover that you’ve got streaming services or subscriptions you don’t use.) It all adds up.
5. Start thinking about the rest. Once you’ve got your arms around these first four steps, start thinking about things like saving for retirement, choosing life insurance, and using a financial planner. But don’t feel pressure to tackle these immediately. The first priority is establishing good financial hygiene in your day-to-day spending and saving. Then build on that success.
6. Stick with it (and whenever possible, make things automatic). Just like losing weight or learning a new language, being proactive about your finances requires repetition. One way to ensure consistency is to leave as little to willpower and memory as possible. Schedule regular deposits into a savings account, set up text alerts or recurring payments to get bills paid on time, or use a budget planning app (like SoFi’s Relay) to track your spending.
Lastly, don’t let yourself be discouraged by comparisons with others your age. People get their arms around their money at different stages of life, and having more life experience can give you a leg up. And, don’t be hard on yourself if you have a misstep. That will only derail your progress further. Just get back on the horse, as they say, and give yourself credit for taking this on. You’re on your way to a solid financial footing, and from there, anything is possible.
In financial health,
Kendall Meade,
CERTIFIED FINANCIAL PLANNER®
image credit: Bernie Pesko
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
OTM2025010601 Read more
Stay up to date on the latest business news and stock market happenings.